FREE INSURANCE AND STUDY GAMES ABOUT TN LIFE

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FREE INSURANCE AND STUDY GAMES ABOUT TN LIFE

EXAM EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -218 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Mode of Payment

Answer:

The method of premium payment, whether annually, semiannually, quarterly, or monthly.

Question 2: Custodial Care

Answer:

Care that is rendered to help an insured complete his/her activities of daily living.

Question 3: Misrepresentation

Answer:

A false statement or lie that can render the contract void.

Question 4: Stock Companies

Answer:

Companies owned by the stockholders whose investments provide the capital necessary to establish and operate the insurance company.

Question 5: Death Benefit

Answer:

The amount payable upon the death of the person whose life is insured.

Question 6: Retention

Answer:

A method of dealing with risk by intentionally or unintentionally keeping a portion of it for the insured's account; the amount of responsibility assumed but not reinsured by the insurance company.

Question 7: Certificate

Answer:

A statement or booklet that confirms that a policy has been written and that describes the coverage in general.

Question 8: Whole Life Insurance

Answer:

Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death, whenever that may be.

Question 9: Exclusions

Answer:

Causes of loss, exposures, conditions, etc. listed in the policy for which the benefits will not be paid.

Question 10: Authorized (Admitted) Insurer

Answer:

An insurance company authorized and licensed to transact business in a particular state.

Question 11: Hazard, Moral

Answer:

The effect of a person's reputation, character, living habits, etc. on his/her insurability.

Question 12: Life Expectancy

Answer:

Average number of years remaining for a person of a given age to live, as shown on the mortality table.

Question 13: Renewability Clause

Answer:

A clause that defines the insurance company's and the insured's right to cancel or renew coverage.

Question 14: Aleatory

Answer:

A contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss.

Question 15: Waiting Period

Answer:

Time between the beginning of a disability and the start of disability insurance benefits.

Question 16: Policyholder

Answer:

The person who has possession of the policy, usually the insured.

Question 17: Preferred Risk

Answer:

An insurance classification for applicants who have a lower expectation of incurring loss, and who, therefore, are covered at a reduced rate.

Question 18: Beneficiary

Answer:

The person who receives the proceeds from the policy when the insured dies.

Question 19: Fraternal Benefit Societies

Answer:

Life or health insurance companies formed to provide insurance for members of an affiliated lodge, religious organization, or fraternal organization with a representative form of government.

Question 20: Cash Value

Answer:

The amount to which a policyowner is entitled if the policy is surrendered before maturity.

Question 21: Hazard, Physical

Answer:

A type of hazard that arises from the physical characteristics of an individual, such as a physical disability due to either current circumstance or a condition present at birth.

Question 22: Commissioner

Answer:

The chief executive and administrative officer of a state insurance department.

Question 23: Level Premium

Answer:

A policy premium that remains the same over the period of time premiums are paid.

Question 24: Surrender

Answer:

An act of giving up a life policy, in which the insurer will pay the insured the cash value the policy has built up.

Question 25: Unilateral Contract

Answer:

A contract that legally binds only one party to contractual obligations after the premium is paid.

Question 26: Alien Insurer

Answer:

An insurance company that is incorporated outside the United States.

Question 27: Option

Answer:

A choice of ways of receiving policy dividends, nonforfeiture values, death benefits, or cash values.

Question 28: Underwriter

Answer:

A person who evaluates and classifies risks to accept or reject them on behalf of the insurer.